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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

More SaaS + Software Stats

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

80% of venture capital investments take place in the enterprise

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

More Growth Strategy Stats

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Is your SaaS business viable?

September 19, 2019 Seminar

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